Management Lecture 07 Goals and Planning

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Management Lecture 07 Goals and Planning Powered By Docstoc
					Principles of Management

   Organizational Goals and
          Planning
  Fundamentals of Organizational
           Planning
• Planning is the first of the four basic
  management functions
• It is the process of determining where the
  organization should be in future and then
  selecting and implementing the most effective
  set of actions to achieve that future state.
• A goal is a future state an organization wishes
  to achieve. Synonymous with Objective.
• A target is a goal with time constraint.
• A plan is the means of pursuing goals.
            Planning Process
• Mission
  – The basic purpose for and driving force
    behind an organization’s existence
  – Mission Statement is the declaration of the
    organization’s purpose and scope of its
    operations
• Goals and Targets
• Plans
• Performance
         Organizational Goals
• Levels of Goals
  – Strategic Goals
     • Broadly defined goals and targets for the organization’s
       overall future results.
  – Tactical Goals
     • Targets to be achieved by the units or divisions of the
       organization.
  – Operational Goals
     • Targets to be achieved by departments or individuals in the
       organization.
• Hierarchy of Goals
  – Means – Ends Chain
    Characteristics of Effective Goals
•   Challenging Goals
•   Attainable Goals
•   Specific and Measurable Goals
•   Time Defined Goals
•   Relevant Goals
                  Examples
• Obtaining a certain rate of profit and return on
  investment
• Emphasizing research to develop a continuing
  flow of proprietary products
• Developing public stock ownership
• Distributing products in foreign markets
• Ensuring competitive process for superior
  products
• Achieving a dominant position in the market
• Adhering to the values of the society in which it
  operates
 Goal Setting and Commitment
• Involves :
  – Establishing
  – Coordinating, and
  – Prioritising the goals
  For
  – Work groups,
  – Managers, and
  – Employees of the organization.
     Organizational Planning
• Levels of Planning
  – Strategic Planning
  – Tactical Planning
  – Operational Planning
     Organizational Planning
• Planning Time Frames
  – Long Range Planning
  – Intermediate Range Planning
  – Short Range Planning
        Organizational Planning
• Types of Plans
   – Single Use Plans
       • A plan designed to fit a one-time situation.
       • Program – A complex single use plan consisting of a set of interrelated
         actions aimed at achieving a one-time major goal
       • Project – a single use plan that is narrower in scope than a program and
         that is aimed at achieving a specific one-time goal
   – Standing Plans
       • A plan for guiding management decisions and activities in situations that
         recur repeatedly.
       • Policy – A standing plan that provides broad guidelines to directing
         managerial activates in pursuit of organizational goals
       • Procedure - a standing plan encompassing a series of detailed steps to be
         followed in particular recurring situations
       • Rule – a standing plan specifying the circumstances in which certain
         activities ca or cannot be performed
   – Contingency Plans
       • Alternative courses of action to be followed if unforeseen environmental
         shifts occur.
   Planning and Management
• Responsibility for Planning
  – Planning Specialist
     • Groups of professionals, Permanent Staff
     • Generally report directly to the president or CEO
     • Make plans for the entire organization
  – Planning Task Force
     • Groups of professionals, Temporary Staff
     • Drawn from various areas of the organization
     • Make specific plans for units of the organization
  – Individual Manager
    Planning and Management
• More Effective Planning
  – Barriers
     •   Rapidly changing, complex environment
     •   Professionals dominating and downplaying the employees
     •   Inappropriate goals
     •   Improper reward system
     •   Reluctance to establish goals
     •   Resistance to change
     •   Constraints
     •   Lack of Commitment
     •   Lack of Communication
     •   Lack of Documentation

				
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